The IIMs in the country might come under an umbrella legislation like the Institutes of Technology Act. It will empower the IIMs to award degrees to the students which they are not competent to do so at present. Extent of financial and administrative autonomy of the IIMs will also be reviewed.
The IIMs in the country function under their respective Memorandum of Associations (MoAs) and rules and regulations framed thereunder. They are societies registered under the Societies Registration Act. The IIMs are public institutions and are accountable to the Parliament. Their accounts are annually audited by the Comptroller & Auditor General and their Annual Reports along with the audited accounts are submitted to the Parliament. They enjoy complete autonomy as regards the academic matters and matters relating to fees, selection of faculty, introduction of new courses, incurring of expenditure in conformity with the prudence involved in public spending etc. Though it is a fact that the three IIMs at Ahmedabad, Kolkata and Bangalore are not dependent on government funds for their day to day operational expenses, this in no way compromises their status of being public institutions. However, funds are being proposed to be given to them for their future expansion. Even as per the present MoAs, these institutions have to maintain a fund in which all moneys provided by the Government or received by way of fees and gifts etc. have to be kept. The IIMs need permission of the Central Government even as per the existing MoAs to acquire or dispose of immoveable properties. The IITs have been flourishing as Institutes of excellence under the Institutes of Technology Act and their autonomy has in no way been adversely affected under the said Act.
